As of December 31, 2019, the Company owned or held a direct or indirect ownership interest in 297 apartment communities containing 86,846 apartment homes in 11 states and the District of Columbia, of which 22 communities were under development and two communities were under redevelopment.
Established dividend payer and overvalued.
Share Price & News
How has AvalonBay Communities's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AVB has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: AVB matched the US REITs industry which returned 16.6% over the past year.
Return vs Market: AVB matched the US Market which returned 17.8% over the past year.
Price Volatility Vs. Market
How volatile is AvalonBay Communities's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StHere's What Analysts Are Forecasting For AvalonBay Communities, Inc. After Its Full-Year Results
3 weeks ago | Simply Wall StDid You Miss AvalonBay Communities's (NYSE:AVB) 25% Share Price Gain?
1 month ago | Simply Wall StHow Should Investors React To AvalonBay Communities, Inc.'s (NYSE:AVB) CEO Pay?
Is AvalonBay Communities undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AVB ($228.02) is trading below our estimate of fair value ($236.14)
Significantly Below Fair Value: AVB is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AVB is poor value based on its PE Ratio (40.4x) compared to the REITs industry average (37.2x).
PE vs Market: AVB is poor value based on its PE Ratio (40.4x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: AVB is poor value based on its PEG Ratio (677.3x)
Price to Book Ratio
PB vs Industry: AVB is overvalued based on its PB Ratio (2.9x) compared to the US REITs industry average (2.1x).
How is AvalonBay Communities forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AVB's forecast earnings growth (0.06% per year) is below the savings rate (1.7%).
Earnings vs Market: AVB's earnings (0.06% per year) are forecast to grow slower than the US market (14.1% per year).
High Growth Earnings: AVB's earnings are forecast to grow, but not significantly.
Revenue vs Market: AVB's revenue (4.6% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: AVB's revenue (4.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AVB's Return on Equity is forecast to be low in 3 years time (7.9%).
How has AvalonBay Communities performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AVB has a large one-off gain of $166.8M impacting its December 31 2019 financial results.
Growing Profit Margin: AVB's current net profit margins (33.7%) are lower than last year (42.4%).
Past Earnings Growth Analysis
Earnings Trend: AVB's earnings have grown by 4.7% per year over the past 5 years.
Accelerating Growth: AVB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AVB had negative earnings growth (-19.3%) over the past year, making it difficult to compare to the REITs industry average (7.6%).
Return on Equity
High ROE: AVB's Return on Equity (7.2%) is considered low.
Return on Assets
Return on Capital Employed
How is AvalonBay Communities's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: AVB has a high level of physical assets or inventory.
Debt Coverage by Assets: AVB's debt is not covered by short term assets (assets are 0.1x debt).
Financial Institutions Analysis
Asset Level: AVB's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if AVB has a sufficient allowance for bad loans.
Low Risk Liabilities: AVB reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if AVB has an acceptable proportion of non-loan assets held.
Low Risk Deposits: AVB has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if AVB has an appropriate level of bad loans.
What is AvalonBay Communities's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Purchase AvalonBay Communities before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AVB's dividend (2.79%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: AVB's dividend (2.79%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: AVB's dividends per share have been stable in the past 10 years.
Growing Dividend: AVB's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (65.6%), AVB's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AVB's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tim Naughton (58yo)
Mr. Timothy J. Naughton, also known as Tim, has been the Chief Executive Officer of AvalonBay Communities Inc. since January 1, 2012 and has been its President since February 23, 2015. Mr. Naughton serves ...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD10.08M) is about average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Tim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|Chief Financial Officer||5.7yrs||US$3.27m||0.021% $6.8m|
|Chief Operating Officer||5.1yrs||US$3.49m||0.034% $10.9m|
|Chief Investment Officer||5.1yrs||US$3.45m||0.042% $13.5m|
|Vice President of Investor Relations||0yrs||no data||no data|
|Executive VP||21yrs||US$1.06m||0.017% $5.4m|
|Senior Vice President of Brand Strategy & Marketing||9.5yrs||no data||no data|
|Senior Vice President of Development - New Jersey||18.1yrs||no data||no data|
|Head of Construction Group and Senior Vice President of Construction||15yrs||no data||no data|
|Executive Vice President of Development - East Coast||10yrs||US$1.65m||0.039% $12.5m|
Experienced Management: AVB's management team is seasoned and experienced (9.5 years average tenure).
|Independent Director||14.4yrs||US$270.05k||0.012% $3.8m|
|Independent Director||5.4yrs||US$225.15k||0.0051% $1.6m|
|Independent Director||8.4yrs||US$245.05k||0.0051% $1.6m|
|Independent Director||6.8yrs||US$240.05k||no data|
|Lead Independent Director||0.8yrs||US$245.05k||0.0043% $1.4m|
|Independent Director||5.1yrs||US$225.15k||0.0048% $1.5m|
|Independent Director||2.4yrs||US$225.05k||0.00036% $115.2k|
|Independent Director||3.4yrs||US$225.15k||0.0032% $1.0m|
|Independent Director||3.4yrs||US$225.05k||0.0020% $652.8k|
Experienced Board: AVB's board of directors are considered experienced (5.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AVB insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
AvalonBay Communities, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: AvalonBay Communities, Inc.
- Ticker: AVB
- Exchange: NYSE
- Founded: 1978
- Industry: Residential REITs
- Sector: Real Estate
- Implied Market Cap: US$32.000b
- Market Cap: US$31.685b
- Shares outstanding: 140.34m
- Website: https://www.avalonbay.com
Number of Employees
- AvalonBay Communities, Inc.
- Ballston Tower
- Suite 800
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AVB||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Mar 1994|
|WV8||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Mar 1994|
|0HJO||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Mar 1994|
|AVBC||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Mar 1994|
|WV8||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Mar 1994|
|A1VB34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 4 REPR 1 COM||BR||BRL||Jan 2020|
As of December 31, 2019, the Company owned or held a direct or indirect ownership interest in 297 apartment communities containing 86,846 apartment homes in 11 states and the District of Columbia, of which 22 communities were under development and two communities were under redevelopment. The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas primarily in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and the Northern and Southern California regions of the United States.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/25 00:09|
|End of Day Share Price||2020/02/24 00:00|